Monitoring Middle East Developments and Plastic Pricing
Updated: 13/04/2026
The market has moved again this week, even with the ceasefire talks. Market info from packaging manufacturers indicates materials remain scarce, with some reporting raw material price increases approaching double previous levels.
We are also seeing this translate to bottle increases of around 28 per cent by some producers in the past week alone. In some cases, suppliers are still unable to confirm price, lead time or delivery dates.
What This Means
- Supply remains tight and unpredictable
- Freight and fuel continue to add pressure
- Pricing is moving faster than normal market cycles
Our Position
Through supply chain management, we have been able to secure the availability of materials and minimise reactive jumps. Through account management, we are working with our customers to lock in orders and provide transparency on pricing till August for exworks supply.
Key takeaway
Even with a ceasefire in the conflict, the market is in an abnormal escalation phase re materials and packaging. Let’s chat today about how we can help you minimise the impact on your packaging.
Updated: 07/04/2026
With the conflict ongoing, oil price increases are not abating over Easter. The focus is shifting to the availability of plastic resin and its impact on packaging production costs worldwide.
On top of this, sea freight fuel surcharges are moving on a weekly basis, here is our latest update on freight only for this week
Effective Monday 6th of April
- Melbourne fuel surcharge on top of freight 44%.
- Brisbane fuel surcharge on top of freight 41%.
- Adelaide fuel surcharge on top of freight 54%.
- Sydney fuel surcharge on top of freight 36%.
- Perth fuel surcharge on top of freight 39%.
This really impacts the import of finished jars in a big way, as well as raw materials, as discussed earlier.
Weltrade’s local manufacturing is helping, and our ops and logistics teams are in constant contact with our supply chain to secure materials and secure the best possible freight rates.
Please reach out to your account manager asap for the latest information on when the best time to lock in orders is.
Updated: 01/04/2026
Packaging material prices continue to rapidly rise across PET PP and HDPE. The reason is simple, oil prices are higher and there is less material available globally each week.
What we are seeing:
- Recent industry reports show how quickly the market is moving
- Resin prices have increased by up to 30 to 50 percent in some cases in a matter of weeks
- Sea Freight costs have surged significantly amplifying the landed cost and our raw material component for packaging
- In some instances, suppliers are unable to confirm price, lead time or delivery dates and when they do it’s a 1 week validity.
What this means in Australia
- Australia relies almost entirely on imported resin, so global disruptions flow through quickly
Right now we are seeing
- Longer lead times
- Less reliable supply
- Ongoing price increases
- Re Freight This week alone, we saw fuel surcharges increase by 16 percent
- While any reduction in local fuel excise or transport costs helps, it will not offset the current rise in resin prices
What to expect
- Prices are likely to remain high in the short term, with PET continuing to move upward
Key takeaway
- This is not a normal cycle
- There is less material available and it costs more to produce
- If you would like to plan ahead or secure supply for the next three months we are here to share and support and lock in some pricing for you.
Updated: 23/03/2026
What is happening
Prices for PET PP and HDPE have increased rapidly over the past 3 weeks
This is being driven by reduced global supply and higher raw material costs, particularly oil and petrochemicals
The result:
– Supply is tight
– Demand remains strong
– Prices are moving up quickly
What we are seeing
PP and HDPE have seen the largest increases and remain elevated.
PET, which was more stable, has now started to move upward and is following the same trend.
Impact on packaging costs
Resin typically makes up around one third of packaging cost
In the past three weeks, input costs have increased by more than 34 percent
This has already resulted in market price increases of over 11 percent
We are working to control conversion costs and aim to limit additional impact to less than 5 percent so it is not required to be passed on
What this means in Australia
As a market reliant on imports, these changes are flowing through quickly
We are seeing:
– Longer lead times
– Less consistent availability
– Ongoing pricing pressure
Fuel surcharges are also rising, with some now quoted up to 45 percent and continuing to increase
What to expect
Prices are unlikely to return to February levels in the short term
The market is settling at a higher baseline, with PET expected to continue trending upward
Forward pricing
Our commitment is to hold the conversion cost component for committed orders.
Input costs will continue to be monitored and adjusted where movements exceed 5 percent, with full transparency. Due to the current speed of market increases, these adjustments may occur more frequently than usual.
Key takeaway
This is not a normal price cycle
It is a reset to a higher cost level driven by global supply pressure
If you would like to discuss your upcoming requirements or secure supply, we are here to help
Updated: 17/03/2026
Recent market signals indicate resin pricing out of Asia is trending upward by up to 30%, driven largely by higher petrochemical feedstock costs and energy market volatility.
In packaging manufacturing, raw materials typically account for around 30% of the total unit cost of finished packaging. Based on current indications, a resin increase of this magnitude could translate to approximately a 10% increase in packaging unit pricing if sustained.
In addition to resin costs, two other factors influence overall production costs:
Freight and logistics
Local delivery surcharges are increasing by approximately 25–30%, reflecting rising fuel and transport costs.
Energy costs
Rising electricity prices are also affecting manufacturing operations, particularly for energy-intensive processes such as injection moulding and blow moulding.
When combined, these factors suggest potential packaging price movements of 15–20% across the supply chain with these inputs flowing through.
Importantly, these increases have not been passed on to Weltrade at this stage.
Forward purchasing by customers has allowed Weltrade to secure raw material allocations in advance, helping buffer against short-term pricing volatility and lock in current supply positions.
We will continue to monitor developments closely and provide weekly updates on resin pricing, energy markets and supply chain conditions.
Updated: 13/03/2026
Global markets are closely watching developments in the Middle East as geopolitical tensions continue to influence energy markets. Oil remains a key driver of plastic resin pricing because most plastics are derived from petrochemicals produced from crude oil or natural gas.
If oil prices rise due to supply concerns or market sentiment, the cost of petrochemical feedstocks such as ethylene, propylene and paraxylene may also increase. These feedstocks are used to produce common packaging resins, including PET, HDPE and PP.
China also plays a major role in the global plastics supply chain, producing roughly one-third of the world’s plastic resins. Changes in Chinese production levels, domestic demand, or export activity can significantly influence global resin availability and pricing.
At present, there are no significant disruptions to resin supply, but energy markets remain sensitive to geopolitical developments.
What this means for packaging buyers
Packaging pricing is typically influenced by two key cost components:
Input Costs (Resin)
• Driven largely by oil and petrochemical feedstock pricing
• Influenced by global resin supply and demand
• Impacted by production levels in major markets such as China
Conversion Costs (Manufacturing)
• Energy used in moulding and processing
• Labour and factory operating costs
• Freight and logistics
If oil prices remain volatile, resin prices may experience upward pressure over the coming weeks.
Weltrade Packaging will continue monitoring market conditions and provide weekly updates on resin pricing trends and supply chain developments.